Mastercard (MA) Ties Up for Improved Payment Service in Singapore
Mastercard Incorporated MA recently inked a deal with Sokin, which makes the latter the principal member and card issuer for Mastercard in Singapore. Notably, Sokin, which was founded in 2019, has emerged as a leading financial service provider that offers seamless international payments devoid of commission at a fixed monthly fee. In fact via reliable partners, Sokin not only aids businesses and customers in making payments across more than 200 countries but also enables foreign exchange services across more than 150 countries and in more than 35 various currencies.
Shares of Mastercard have lost 0.6% in the last two day’s trading.
The new deal further adds to the benefit offered by Sokin’s newly introduced subscription-based payment service, which is expected to be available in the first quarter of next year.
The new offering is likely to pave the way for improved payment services as the proprietary technology of Sokin facilitates international money transfers and payments through its secured peer-to-peer mobile app. The same offering has also been a cost-effective one, which compared with prevalent payment solutions helps customers in saving 20% on average.
Notably, Mastercard and Sokin seem to be sharing a strong bond as they have already joined forces in Europe and the U.K. prior to this deal in Singapore. The company has put their trust in Sokin, considering the latter’s capabilities to roll out secured payment solutions. Moreover, Sokin’s emergence as a leading fintech offering international payments within a short span of time has contributed to the same.
The abovementioned deal seems to be a win-win situation for both the companies. Notably, Mastercard’s enhanced digital solutions integrated with Sokin’s cost-effective service will not only aid businesses and customers across regions where the partnership is extended but also strengthen their market presence.
Shares of Mastercard have gained 15.4% over a year compared with the industry’s growth of 7.1%.
Prior to the latest move, Mastercard had tied forces last month with a Singapore-based fintech – MatchMove for issuing the first pilot of the biometric card named F.CODE in Asia, which has been devised by IDEMIA per Mastercard’s technical and design specifications.
A Digital Economy: Need of the Hour
Mastercard has been partnering with several organizations and rolling out cost-effective solutions for offering hassle-free payment experiences to several parts of the world and thereby capitalize on the current prospects in the global digital payments space. The massive shift of the payments industry to the digital from its physical mode, which was already underway, has been further aggravated by the COVID-19 pandemic. The trend is likely to sustain even beyond the pandemic, which places Mastercard well for long-term growth. Notably, it currently has a Zacks Rank #4 (Sell).
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